LG Electronics is building a blockchain-based advertising network on its own Arbitrum-derived Layer 2, with a pilot completed and a commercial launch targeted for later this year.
LG Electronics is building a blockchain-based advertising network on its own Arbitrum-derived Layer 2, according to an exclusive report by Fortune published Thursday. The company describes the project as a pilot with no commercial launch date set.
The South Korean electronics giant, known for TVs and laptops, has a dedicated blockchain research lab that developed the platform in-house. The network gives advertisers and publishers a shared database of ad inventory and records on-chain how users have engaged with advertisements. LG completed a pilot with an unnamed Japanese advertising agency and plans to explore commercializing the platform later this year, per Fortune.
“We are evaluating whether this approach can deliver meaningful value to advertisers, publishers and audiences,” Samuel Byungsun Park, head of LG Electronics’ blockchain research department, said in a statement to Fortune.
Built on Arbitrum Technology
LG worked with Arbitrum, the Ethereum Layer 2 network, to build its own dedicated chain. The collaboration produced a custom L2 that uses Arbitrum’s technology to batch transactions at low cost, which LG’s team used to underpin the ad-inventory database. Arbitrum’s official account confirmed the project Thursday on X, noting that LG’s blockchain team sits within the company’s R&D division.
Arbitrum cofounder Steven Goldfeder told Fortune the platform could automate ad buying.
“It means that you can basically run the market in an automated way in software,” he said. “You don’t need manual interventions.” Goldfeder also noted that corporate chains are not the right choice for every company: “For many people, the answer is yes, but probably for most people, the answer is no.”
Status: R&D Pilot
Fortune described the initiative as an R&D pilot. LG has not disclosed the scale of the test, any live advertiser revenue, or a firm commercial launch date. The company plans to evaluate the platform further before any broader rollout.
LG joins a growing group of corporations building their own chains on top of existing Layer 2 infrastructure. Robinhood is developing an Arbitrum-based chain for tokenized equities, having opened its public testnet earlier this year. Stripe worked with Paradigm to develop a high-speed chain called Tempo. Circle is building Arc, its own decentralized ledger. Fortune noted that Goldfeder sees purpose-built corporate chains as appropriate for some but not most companies.
The LG pilot brings a consumer-electronics advertising use case to Arbitrum, which has been anchored primarily by DeFi protocols and financial-asset tokenization. As of Thursday, LG has made no public statement on ad-volume targets or specific timeline milestones beyond the “later this year” framing Fortune reported.
